Quoth the Raven
· QTR’s Fringe Finance
· May 19, 2026 at 12:02
· ⏱ 9 min read
| Read on Substack ↗
Summary
Berkshire Hathaway's purchase of Macy's—a deeply discounted, cash-generating department store with valuable real estate—is a deliberate contrarian bet against the AI mania, signaling that durable, overlooked businesses can offer better risk-reward than hyped narratives. The article argues that investors should focus on fundamentals, patience, and avoiding emotional decision-making rather than chasing speculative trends.
•Berkshire Hathaway held over $390 billion in cash before buying Macy's.
•Macy's was trading near book value and at a low forward earnings multiple, with substantial real estate including the Herald Square property.
•The purchase includes exposure to higher-performing brands Bloomingdale's and Bluemercury.
•The author contrasts this with the AI bubble, where startups with no revenue or profits raise billions by mentioning 'large language model'.
•Berkshire increased its stake in Alphabet, showing it is not anti-technology but avoids confusing narrative with investment quality.
•The article draws a parallel to the dot-com bubble, warning that enthusiasm alone does not substitute for sustainable economics.